Chen V.

Delina R.

Dorčák P.

Doucek P.

Doucek. P.

Fischer J.

Gujarati D. N.

Hančlová J.

Hájek M.

Jakub Fischer

Jana Hanclova

Karagiannis S.

Kraemer K. L.

Kristyna Vltavska

Lukáčiková A.

Petr Doucek

Pohjola M.

Ruddock L.

Solow R.

The paper examines economic growth in old and new member countries of the European Union (EU-15 and EU-12) during the years of 1994–2000 and 2001–2008 mainly due to changes in information and communication technology (ICT) capital development. The first group EU-15 is presented by old EU countries and the second group EU-12 is presented by new member countries that joined the EU in 2004–2007. The threefactor Cobb-Douglas production function is estimated through the panel general least squares method. The input factors that might influence the economic growth are labour, ICT capital services and non-ICT capital services. Since ICT capital growth data are not available for all selected economies, the groups of countries were reduced to EU-14 and EU-7. The estimated panel production functions confirmed that the average growth of GDP in the EU-7 countries was supported by the stable growth of labour quantity and ICT-capital and increasing total factor productivity. A short-term drop in non-ICT capital growth with follow-up stagnation was caused rather by lower labour productivity. The research discovered that the drop in GDP growth in the EU-14 countries was a result of the slower growth of non-ICT capital and total factor productivity and the stagnated growth of ICT capital with low elasticity, and showed that even the compensation of growth in labour quality did not prevent a decrease in total factor productivity and economic growth.</jats:p

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Journal of Business Economics and Management

DOES ICT CAPITAL AFFECT ECONOMIC GROWTH IN THE EU-15 AND EU-12 COUNTRIES?

DOES ICT CAPITAL AFFECT ECONOMIC GROWTH IN THE EU-15 AND EU-12 COUNTRIES?

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